Twenty eight percent of Saudi Arabia's residents have cut down on their household expenditure in response to the current recession - one of the lowest decreases in the Gulf region, according to the latest study by the Middle East's number one job site - Bayt.com - in conjunction with research specialists YouGov. The study found that around the rest of the region, 30 percent of professionals have cut down on their household spending, while just over a quarter of all respondents have actually increased their household budget. “In similar research over the past six months, we have seen that many of Saudi Arabia's consumers are cutting back on their spending. Now, despite some signs of optimism at the grass roots level in the global economy, it seems the trend of being more price-conscious looks set to continue, at least in the short-term,” said Nassim Ghrayeb, CEO of YouGov in the MENA region. When it came down to the reasons why professionals have cut down on their household spending, the recession was the most common answer among GCC respondents, at 43 percent. This was closely followed by cutbacks because the respondents - or a member of their household - had lost their job, at 37 percent. Saudi Arabia's figures were significantly lower than the regional average - 29 percent stated they have cut down household spending due to job losses. Among the surveyed countries, the UAE was most affected by job losses; almost half of all respondents - 45 percent cited it as the reason for a decrease in spending. Asked about whether they were willing to settle for a reduced salary in a new job in case of redundancy, only 31 percent of all respondents stated they would be willing to accept a reduced amount of pay, while 45 percent stated that they wouldn't settle for any less. Saudi Arabia matched the regional average - 31 percent stated they would accept a lower salary, while the majority - 46 percent stated they wouldn't. The figures were similar around the region, with 38 percent of respondents in the UAE and 37 percent in Lebanon willing to accept less salary, closely followed by Bahrain and Jordan at 36 percent each. The study also asked the respondents how much less they would be willing to settle for, if they were to take up a new position. Interestingly, unemployed professionals seemed far more willing to compromise: 49 percent of working professionals would not accept less than their current package, compared to only 27 percent of those currently unemployed. “There is a general consensus that the recession is having a sustained impact on the region, which of course manifests itself in the behavior and attitudes of professionals living and working here. The recession naturally leads to a dearth in liquidity, which is made very clear by the fact that so many residents in the region have limited their spending. By conducting this study, we are shedding light on the extent of these limitations and how, overall, people feel they are dealing with the situation. This gives the region's organizations valid information about how the recession is being played out - by the people in the heart of the slump,” said Amer Zureikat, Bayt.com's regional manager. The “Surviving the Recession” study was conducted to gauge consumers' opinions on their struggles during the global economic recession, to understand the impact the recession has had on a personal level and how it has impacted consumer spending and savings. The study asked the respondents about their financial health both before and during the recession to ascertain how many professionals felt their financial position has changed. Prior to the recession, 36 percent of all respondents felt they were better off than their peers, 39 percent felt they were the same, and 12 percent felt they were worse off. During the recession, respondents generally felt their position had worsened. In Saudi Arabia, the figures also showed a marked change. Before the recession, 38 percent of respondents felt financially better off than their peers, while only 28 percent of respondents said they feel better off during the recession. When asked about the reason for this change in their financial health, less than a third of respondents in Saudi Arabia, 27 percent, cited it was due to job loss, and less than a fifth, 17 percent, stated it was due to a salary cut. According to the study, job losses featured most strongly in the UAE at 48 percent, suggesting that redundancies have been much more widespread in the emirates. The effects of the recession on financial health have also spilled over into respondents' investments. Twenty one percent of all respondents expect to sell investments to support themselves or their families during the recession. Most unaffected were respondents in Bahrain; 56 percent stated they do not foresee having to sell any assets, closely followed by Saudi Arabia and Algeria's respondents, of whom, 48 percent each agreed their financial position would not reach a point where they had to sell. In Saudi Arabia, the study found that just 6 percent of respondents have sent their families home, 7 percent have moved to a smaller home, and 7 percent have moved to a cheaper areaa. In KSA, 24 percent of respondents said they were affected by the recession physically.
